Minto sells two west end properties to Ottawa Community Housing

Ottawa Community Housing has acquired 311 townhouses in Nepean from Minto Apartments REIT in an $86-million sale. (Jim O'Grady/CTV News Ottawa)

Two Ottawa properties owned by Minto will become Ottawa Community Housing (OCH) units following an $86-million sale.

Minto Apartments REIT (Real Estate Investment Trust) announced the sale of the Tanglewood and Chesterton/Bowhill properties in the Nepean area Tuesday.

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The acquisition by Ottawa Community Housing will add 311 units to its portfolio. The Tanglewood community was built in 1975 and comprises 122 three-bedroom townhomes. Chesterton was built in 1969 and includes 154 three-bedroom townhomes and 35 four-bedroom townhomes, OCH says.

"OCH's acquisition of these 311 homes signifies a strategic milestone in preserving affordable housing solutions for low and moderate-income families," said OCH CEO Stéphane Giguère in a news release. "This transaction is a demonstration of our commitment to addressing the critical issue of housing affordability in Ottawa and also stands as a testament to our dedication to innovation and community-focused development partnerships."

The transfer of ownership will officially close on Feb. 15. OCH says all current tenants in these two neighbourhoods will remain housed.

"By limiting rent increases to cover cost recovery only, OCH achieves its long-term goal of maintaining affordable rents. The rents are in line with the guidelines set by the Canada Mortgage and Housing Corporation (CMHC) for affordable market rents," OCH said in a news release.

Mayor Mark Sutcliffe said the deal would play a crucial role in making housing affordable in the capital.

"As the City of Ottawa aims for OCH to contribute about 300 affordable homes annually, this acquisition not only preserves existing housing for residents it also ensures more people have lasting housing options that remain affordable," he said.

Ottawa Community Housing provides approximately 15,000 homes to about 32,000 tenants and is the largest social, community, and affordable housing provider in Ottawa. The newly acquired properties will be managed by ARRIV Properties, the banner for OCH's affordable housing rentals. Minto says this should help ensure a seamless transition, minimizing any disruptions to current tenants.

Minto president and CEO Jonathan Li says the company is pleased with the transaction.

"We are pleased to be playing a role in addressing the affordable housing issue in Canada by conveying these assets to OCH, who can maintain their affordability indefinitely," Li said.